Chapter 1 Introductions to Nonprofits

When did nonprofits first emerge in America?

• 1602

• 19th century

• 20th century

• 21st century

What are the three main groups into which nonprofits can be divided?

• Public charities, private foundations, and other nonprofit organizations

• Public charities, private foundations, and government organizations

• Public charities, private companies, and other nonprofit organizations

• Public charities, private companies, and government organizations

Who contributed to the development of the modern nonprofit structure in the United States?

• Daniel Webster and Chief Justice John Marshall

• Attorney General and Chief Justice John Marshall

• Daniel Webster and President John Adams

• Attorney General and President John Adams

What was the impact of the Tax Reform Act of 1969 on the nonprofit sector?

• It imposed more regulation on the nonprofit sector

• It provided tax incentives for charitable donations

• It established the right of private nonprofit organizations to be free from political influence

• It required nonprofits to file annual financial statements

What is the current financial situation of the nonprofit sector in the United States?

• Nonprofits reported revenues totaling $2.62 trillion and total assets worth $5.99 trillion

• Nonprofits reported revenues totaling $1 trillion and total assets worth $2 trillion

• Nonprofits reported revenues totaling $5.99 trillion and total assets worth $2.62 trillion

• Nonprofits reported revenues totaling $2 trillion and total assets worth $1 trillion

What is the purpose of articles of incorporation for a nonprofit organization?

• To outline the financial policies of the organization

• To establish the organization's basic information and structure

• To determine the number and process of trustees

• To protect the organization against fraud and corruption

What is the role of the board of trustees in a nonprofit organization?

• To oversee the organization and ensure financial stability

• To provide free expertise and resources

• To raise funds through operating businesses

• To file the annual IRS Form 990

Why is setting financial policies crucial for nonprofits?

• To attract investors and secure loans

• To fulfill their mission and maintain good financial condition

• To avoid annual reporting and regulation

• To broaden their definition of resources

What resource center provides advice and resources for nonprofits to develop financial policies?

• Independent Sector

• IRS

• U.S. states

• Allen J. Proctor

What is one way for nonprofits to augment their mission and finance their mission?

• Selling their expertise

• Charging for services

• Raising an endowment

• Owning a for-profit business